What this guide helps you evaluate
U.S. investors researching an IRA custodian that permits alternative assets such as real estate.
Prepared by the PROFENG Editorial & Engineering Team. This page is designed to help you compare the moving parts, organize due diligence and ask better questions before you commit money, sign a contract or change an operating process.
What to compare first
- Custodian capabilities and fees
- Prohibited transactions and disqualified persons
- Source of purchase, repair and operating funds
- No personal use or personal benefit
- Valuation, tax filings and possible unrelated business income issues
Step-by-step process
- 01
Confirm the custodian allows the intended real estate investment.
- 02
Review prohibited-transaction rules before identifying counterparties.
- 03
Keep all purchase and property expenses within the IRA structure as required.
- 04
Direct income back to the IRA and maintain separate records.
- 05
Use qualified tax and legal advisers for leverage, entities and related-party questions.
Common mistakes and risk checks
- Using IRA-owned property personally.
- Paying property expenses personally and trying to reimburse informally.
- Transacting with a disqualified person without specialist advice.
Primary and official references
Rules, pricing and requirements can change. Use these sources to verify the latest details that apply to your situation.
How to use and verify this guide
Use the comparison criteria and questions as a decision framework, then verify current prices, legal requirements, technical specifications, service terms and regulatory obligations with the primary or official references listed above. PROFENG explains its source, calculation and review principles on the methodology page.